There is an old saying: If you are good at something, never do it for free. This seems to be playing out in the current market crash, which began in February 2025 and continues into March. Meanwhile, India celebrated a major victory by winning the Champions Trophy 2025 against New Zealand. However, small investors, retail investors, and medium investors have suffered heavy losses due to the ongoing market crash. Many investors have gone beyond their principal investments, with returns now in the negative. Moreover, various new costs and taxes introduced by the current financial policies have further strained the wallets of the middle class.

Analysing the Situation

To understand why this is happening, we can categorise income groups into three segments:

1. Those earning below Rs 5 lakhs
2. Those earning between Rs 5 lakhs to Rs 12 lakhs
3. Those earning above Rs 12 lakhs, often referred to as High Net-Worth Individuals (HNIs) or the elite class

When the government seeks funds for advertising campaigns, promotional activities, or temporary call centres, it typically looks to the elite class. For individuals earning below Rs 5 lakhs, they are primarily considered a vote bank. However, the middle-class group, often wrongly labelled as the “undecided voter” or “shifting voter,” bears the brunt of financial policies. This group contributes significantly to economic stability but faces unfair financial pressure, particularly during market downturns.

The National Pension System (NPS) – A Case Study

The National Pension System (NPS) was introduced only recently, yet it has gained a substantial subscriber base due to its financial advantages. With as little as Rs 500, a common investor can enter the stock market and benefit from a diversified portfolio managed by experienced traders and institutions such as SBI, which has decades of expertise. In theory, small investors should be able to leverage the expertise of these institutions and benefit from market growth.

However, the reality is different. India still operates within a highly regulated economy where bureaucratic red tape hinders the use of modern technology. While businesses abroad can deploy advanced technologies with minimal restrictions, Indian businesses face unnecessary hurdles. For example, many foreign start-ups efficiently manage billions in market capitalisation with fewer than ten employees by leveraging Artificial Intelligence (AI) agents. However, due to regulatory restrictions in India, small businesses struggle to implement similar innovations. Case in point is separate deliveries for items on same quick commerce order is just another example of the two steps forward one steps backward style.

Technology and Its Impact on Economic Growth

India’s outdated technological policies further limit economic growth. Take energy generation as an example. In countries like the United States, citizens can legally produce and utilise hydrogen fuel cells in their homes. While regulations vary by state, most Americans are free to own and use advanced technology, provided it does not pose a threat to public safety.

In contrast, India’s restrictive policies make technological adoption difficult. Even if individuals or businesses possess innovative technology, they risk being reported to authorities. In some cases, even family members may inadvertently mention such activities to friends, leading to legal repercussions. This reluctance to allow widespread access to technology is deeply ingrained in outdated mind-sets, where technological knowledge is treated as an exclusive privilege rather than a universal right.

The Government’s Role in Market Stability

Returning to our opening quote—If you are good at something, never do it for free—the government has the power to stabilise the market. One solution is licensing technology and simplifying its adoption for small businesses. The Single Window Clearance Scheme, introduced in haste by Mr Piyush Goyal, was later withdrawn for similar reasons—companies lack the capital to operate with outdated technology. Meanwhile, foreign competitors, equipped with cutting-edge innovations, continue to dominate global markets, leaving Indian businesses struggling to compete.

Investment Advice Amidst the Market Crash

Given the current volatility, gold remains the safest investment. Until the storm passes, investors may find security in gold while awaiting policy reforms that create a more balanced economic environment.

We at Asia-Pacific Institute of Management (AIM) encourage innovative thinking like this with an ethical paradigm. This is why we are considered a top rated PGDM College in Delhi and in North India. We encourage you to connect with us and grow at one of the best MBA / PGDM colleges in Delhi. 

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Note: This blog was written by a faculty member of the Asia-Pacific Institute of Management

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Anand Prakash

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